Ameriflight Charged Pilots Up to $30,000 to Quit Their Jobs Now It’s Paying $425,000 and Canceling the Debt

Ameriflight LLC, the nation’s largest Part 135 cargo airline, agreed to pay $425,000 to settle a class action lawsuit alleging it trapped pilots in their jobs using illegal training repayment agreement provisions — known as TRAPs. The settlement covers pilots who signed a Beechcraft 99 training repayment agreement between January 30, 2019, and February 28, 2025. Unlike most settlements, eligible pilots do not need to file a claim — payments go out automatically.

Quick Facts

FieldDetail
Settlement Amount$425,000
Claim DeadlineNo claim form required — payments are automatic
Who QualifiesBeechcraft 99 pilots with a Ameriflight TRAP (Jan. 30, 2019 – Feb. 28, 2025) who left before completing the repayment term; FLSA opt-in plaintiffs
Payout TypeFull reimbursement of training payments made + minimum wage damages (FLSA group)
Proof RequiredNot applicable — administrator uses employment records
Settlement StatusPreliminarily approved — Fairness Hearing May 7, 2026
AdministratorAtticus Administration
Official WebsiteTrapLawsuit.com

Current Status & What Happens Next

  • The court granted preliminary approval. The final fairness hearing is scheduled for May 7, 2026, in the U.S. District Court for the Northern District of Texas, Dallas Division.
  • The settlement administrator will issue payments to opt-in plaintiffs and the unlawful penalty class for full reimbursement within 30 days after the court resolves any appeals and grants final approval.
  • The settlement administrator will issue minimum wage damage payments to opt-in plaintiffs within 120 days after final approval and resolution of any appeals.

Ameriflight Paid Pilots $12.50 an Hour — Then Billed Them $20,000 for Leaving

Ameriflight, the nation’s largest Part 135 cargo airline, serves as a critical link in the UPS, FedEx, and DHL supply chains. To fly cargo for those giants, Ameriflight needed pilots — and it had a system for keeping them. Every new pilot hired to fly the Beechcraft 99 had to sign a Training Repayment Agreement Provision. The contract required pilots to pay Ameriflight between $20,000 and $30,000 for their training if they left the company before completing 18 to 24 months of flying.

The complaint alleged that Ameriflight paid pilots wages starting as low as $12.50 an hour — or about $30,000 per year — to fly aging aircraft, while simultaneously saddling them with debt for job training required by the FAA that could not transfer to any other employer. If a pilot left for a better-paying airline, they would need to repeat the training from scratch — and still owe Ameriflight up to $30,000 for the training they already completed. The lawsuit alleged Ameriflight aggressively enforced these TRAPs by sending pilots to debt collections and refusing to provide an accounting of its actual training costs.

The case, Fredericks v. Ameriflight, LLC, Case No. 3:23-cv-01757-X, was filed in the U.S. District Court for the Northern District of Texas. In March 2024, the court denied Ameriflight’s motion to dismiss, ruling that the TRAP operated as a “de facto” non-compete that prevented workers from leaving their jobs and that charging workers for on-the-job training may violate minimum wage laws. That ruling set one of the first legal precedents in the country establishing that TRAPs — which have spread across industries from airlines to pet grooming — can be illegal under federal and state wage law. Ameriflight denies all wrongdoing but agreed to settle to avoid continued litigation.

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Ameriflight Charged Pilots Up to $30,000 to Quit Their Jobs Now It's Paying $425,000 and Canceling the Debt

Two Groups of Pilots Qualify — And You May Be in Both

The settlement covers two primary groups of pilots. Some individuals may be members of both groups if they meet both sets of criteria.

Unlawful Penalty Class:

  • You may qualify if you had a Beechcraft 99 training repayment agreement with Ameriflight between January 30, 2019, and February 28, 2025.
  • You may qualify if you completed your Beechcraft 99 training and then left Ameriflight before the end of your repayment plan term — regardless of whether you resigned or were terminated.
  • You will not qualify for this group if your training repayment agreement covered an aircraft other than the Beechcraft 99.

FLSA Opt-In Collective:

  • You may qualify if you previously consented — opted in — to join the Fair Labor Standards Act collective action during the opt-in period in this case.
  • You will not qualify for this group if you received an opt-in notice but did not respond, or if plaintiffs’ counsel no longer represents you.

If you are unsure which group applies to you, contact the settlement administrator at [email protected] or call 1-857-800-0440.

No Claim Form Needed — But You Still Need to Update Your Address

This settlement works differently from most. Class members do not need to file a claim to receive compensation. The settlement administrator will automatically send payments via paper check to the address on file. If Ameriflight’s records have an outdated address for you — which is likely if you left the company years ago — you will miss your check unless you act.

Here is what you need to do:

Unlawful Penalty Class — What You Receive: Class members who made payments to Ameriflight or a third-party debt collector after leaving the company under a training repayment agreement will receive a reimbursement equal to the total amount paid, including any interest and collection costs. This reimbursement is considered nontaxable.

FLSA Opt-In Plaintiffs — What You Receive: Opt-in plaintiffs will receive a second payment as compensation for alleged minimum wage violations. The administrator allocates this amount proportionally based on each plaintiff’s total regular earnings while employed at Ameriflight. The administrator splits this payment 50% as wages and 50% as liquidated damages reported as 1099 other income.

Beyond Cash — What Ameriflight Agreed to Stop Doing: As part of the settlement, Ameriflight agreed to declare these agreements null and void, discontinue collections, and waive approximately $852,128 in outstanding balances. Ameriflight will also not enforce noncompetition provisions in certain contracts. For pilots still carrying an Ameriflight training debt on their credit report or in collections, this debt cancellation may be the most significant part of the settlement.

Update Your Address and Choose Your Payment Method Now

Step 1 — Visit the official settlement website: TrapLawsuit.com

Step 2 — Log in using your Claimant ID (provided in your settlement notice) and update your current mailing address if it has changed since you left Ameriflight.

Step 3 — If you prefer to receive payment via Venmo, PayPal, or Zelle rather than a paper check, select an alternative payment method using the online form at TrapLawsuit.com.

Step 4 — If you did not receive a settlement notice and believe you qualify, contact the administrator directly before the fairness hearing.

Step 5 — Wait for final court approval on May 7, 2026. No further action is required once your address is confirmed.

Mail address updates to: Fredericks v. Ameriflight, c/o Atticus Administration, PO Box 64053, St. Paul, MN 55164

Phone: 1-857-800-0440 | Email: [email protected]

Estimated time to update your address and payment preference: 3–5 minutes.

Key Dates

MilestoneDate
Lawsuit Originally Filed (Puerto Rico)January 30, 2023
Case Refiled — N.D. Texas2023 (Case No. 3:23-cv-01757-X)
Motion to Dismiss DeniedMarch 20, 2024
TRAP Agreement Coverage Period EndsFebruary 28, 2025
Final Approval HearingMay 7, 2026
Reimbursement Payment DeadlineWithin 30 days of final approval
Minimum Wage Damage Payment DeadlineWithin 120 days of final approval

Frequently Asked Questions

I left Ameriflight years ago and already paid the TRAP debt in full. Do I still get reimbursed?

 Yes — and this is one of the most important things to understand about this settlement. Class members who made payments to Ameriflight or a third-party debt collector after leaving the company will receive reimbursement equal to the total amount they paid, including interest and collection costs. If you paid $20,000 or more, you are entitled to a full refund of whatever you actually paid out.

I never paid the TRAP debt — I just ignored the bill or disputed it. Do I still qualify?

 Possibly. If you had a qualifying Beechcraft 99 training repayment agreement and left before your term ended, you may be part of the unlawful penalty class regardless of whether you paid. Contact the administrator to confirm your status. Additionally, Ameriflight will waive approximately $852,128 in outstanding balances as part of the settlement — meaning debts still in collections or unpaid may be wiped out.

What exactly is a TRAP, and why did the court say it was illegal? 

A TRAP — Training Repayment Agreement Provision — is a contract that requires a worker to repay their employer for job training costs if they leave before a set period. The court ruled that when corporations charge workers for the costs of doing business, they are seeking a kickback against workers’ wages, which may violate minimum wage laws. The court also found the TRAP operated as a de facto non-compete. The FAA requires the Beechcraft 99 training — it is not optional, and the certification cannot transfer to another airline — which strengthened the plaintiffs’ argument that the training primarily served Ameriflight’s interests, not the pilots’.

Do I need a lawyer to participate in this settlement?

 No. Payments go out automatically to known class members. You only need an attorney if you want to object to the settlement terms or pursue claims that fall outside this settlement’s scope.

Is this settlement legitimate? 

Yes. The case — Fredericks v. Ameriflight, LLC, Case No. 3:23-cv-01757-X — is pending before Judge Brantley Starr in the U.S. District Court for the Northern District of Texas, Dallas Division. Atticus Administration manages the settlement. Use only the official site at TrapLawsuit.com.

When will payments actually arrive? 

Reimbursement checks for the unlawful penalty class go out within 30 days of final approval. Minimum wage damage checks for FLSA opt-in plaintiffs go out within 120 days of final approval. Both timelines start after the May 7, 2026 fairness hearing and resolution of any appeals.

I worked at Ameriflight but flew a different aircraft, not the Beechcraft 99. Am I covered?

 Pilots with repayment agreements for aircraft other than the Beechcraft 99 are not included in the unlawful penalty class. However, if you previously opted in to the FLSA collective, you may still qualify for minimum wage damages. Contact the administrator to verify.

Will the reimbursement payment count as taxable income?

 The training payment reimbursement is considered nontaxable, but class members should consult a tax advisor for their personal tax implications. The minimum wage damage payment splits 50% as wages (W-2) and 50% as liquidated damages (1099), both of which have tax implications. Consult a tax professional when you receive your payments.

Sources & References

  1. Official Settlement Website (Atticus Administration): TrapLawsuit.com
  2. PACER Docket — Case No. 3:23-cv-01757-X, N.D. Tex.: pacer.uscourts.gov

Last Updated: March 24, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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